The leading stablecoin Tether currently has a market capitalization of over $84.57 billion. It is predominantly used in cryptocurrency transactions by retail users on exchanges.
However, among institutional investors, USDC remains the most widely used stablecoin.
According to the Brazilian Tax Service, USDT is responsible for up to 80% of digital currency transactions in the country.
In 2023, the domestic market turnover for Tether alone amounted to 271 billion reais ($55 billion), while the volume for Bitcoin transactions reached 151 billion reais ($30 billion).
The tax officials also noted a significant increase in investment in USDT in Brazil since 2021, which reached its peak last summer following the collapse of hedge fund Three Arrows Capital.
However, due to regulatory pressure and the decline in the crypto market, the volume of digital asset transactions decreased by around 25% in 2022, totaling 154.4 billion reais ($31 billion).
The Brazilian tax service gathers this data from crypto exchanges.
Since 2019, crypto companies have been required to provide information to the authorities about the volume of virtual currency transactions.